The latest news about commercial real estate in Canada comes from the Melcor Real Estate Investment Trust (MR-UN-T). Melcor REIT is known as one of the most diversified asset management and real estate development companies in the commercial and residential sectors. They specialize in developing and managing a diverse real estate portfolio. Their portfolio includes retail and commercial centers, golf courses, office buildings, industrial and business parks, and mixed-use residential communities.
The company owns assets in Canada’s British Columbia, Saskatchewan, and Alberta provinces. Additionally, they own real estate assets in Colorado and Arizona USA. With almost a hundred years of expertise in real estate dating back to 1923, Melcor has built more than 140 communities all over Western Canada.
Today, the company owns over 600 residential rental units while managing more than 4 million square feet in commercial real estate assets. This Edmonton-based company has regional offices in Phoenix, British Columbia, and Alberta.
The purchase of RONA-anchored retail power center
Melcor reached an agreement to buy a retail power center in Alberta. The retail power center is 283,235 square-foot and it contains 15 buildings in Grande Prairie, Alta. The price of acquiring this retail power center is $54.8 million.
They plan to turn their RONA-anchored retail power center into an open retail complex. The location of the 33.3-acre complex is known as a regional destination corridor that goes for 2400 feet of highway frontage. It has a great tenant mix for the Alberta retail center and will boast occupancy of 98.9 percent.
Melcor’s primary goal of this retail purchase is to increase the gross leasable area of its portfolio by nearly 10%, which brings around $766.5 million of gross book value and builds value for its unit-holders.
“This acquisition again demonstrates Melcor REIT’s ability to execute on our growth strategy,” said Darin Rayburn, Melcor’s president and chief executive officer in a release.
The purchase of a RONA-anchored retail power center is a good example of how companies like Melcor REIT seek out opportunities to ensure maximum growth, while private placements similar to this one show the potential of Canadian commercial real estate has for those who are ready to invest.
When you are ready to invest in a retail center in Alberta, Ontario and/or Saskatchewan contact ReDev, as we are the local experts that help investors grow their portfolios.